AorTech Relocates Primary Manufacturing Operations
The relocation, which is anticipated to benefit the company in a number of ways, is expected to cost $1.8m.
Firstly, the relocation will allow for the growth of AorTech's polymer and component businesses. Secondly, the MSP area is the hub for the largest concentration of medical technology companies in the world and includes many of AorTech's current and potential customers.
Finally, the relocation will remove certain exchange rate risk to the company as the expenses associated with the company's primary cost centre (its factory) and its revenues will be in the same currency.
The relocation will also include the companyâ€™s medical polymer and component divisions, along with the customer application engineering, R&D, and quality assurance labs to support these two manufacturing divisions.
The customer reaction to this initiative has been very positive and production is expected to commence in the Rogers facility, near MSP, in the third quarter of 2011, said AorTech.
AorTech has appointed Gregg Chiponis as vice president of operations and quality. It will also retain its chief scientific officer Ajay Padsalgikar.
Frank Maguire, CEO of the company, said: â€œThis is a significant strategic development for AorTech. The relocation of our Manufacturing and Technology Centre into the US medical device marketplace has been something our existing and prospective customers have been requesting for some time.
â€œConfidential discussions with customers ahead of this announcement have led us to believe that this move will be extremely well received. We expect the move to have an important impact on the creation of new business, accelerating our customer application projects and our cost structure. In addition, the funds from this transaction will provide resources to accelerate a number of key AorTech device and product development programs.â€
AorTech is a manufacturer of biostable, implantable polymers, which are used in cardiology, orthopaedic, urological and gastroenterological applications, including pacing leads, cardiac cannulae and stents.
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